...May 15, 2012 Sharon Rao-Farista Arcor: Global Strategy Local Turbulence (Case 9- 704-427, Harvard Business School) 1. Based on the data available, to which extent was the CAGE model relevant for the decisions taken by ARCOR until the crisis started in 1999? The CAGE model is relevant to the decisions taken by ARCOR up until the crisis in 1999, in the following ways: 1. ARCOR identified that Brazil had a fairly similar culture in chocolate and candy consumption to Argentina, hence in 1976, Arcor established itself in Brazil. 2. ARCOR also may have chosen to enter Brazil because of it sharing a border with Argentina. There was little geographic distance 3. With Brazil’s large population, Arcor had access to the economic benefit of a larger market 4. Arcor entered the US in 1993, since consumers accounted for one third of the global confectionary market. Again, there was economic benefit for Arcor. 2. Based on the AAA strategies, develop at least 2 different strategies for Pagani in 2002 in order to further develop ARCOR’s business strategy. Explain which is your preferred option The two strategies that I would propose are Adaptation and Aggregation. - Adaptation has worked so far for Arcor since it has identified differing tastes and consumer behaviour linked to chocolate and candy across different markets. - Aggregation has also proved useful to Arcor, since the cost of setting up plants and procuring raw materials in each new market proves to be costly. In terms of...
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...Edouard Beaude Shanghaï, November 2015 Global Strategy: Arcor global strategy, Local turbulence Executive Summary: The following analysis will focus on studying the international development of Arcor, an Argentinian company producing chocolate and candies. The confectionary industry is a competitive industry with some major actors sharing the market on very specific market segment . Arcor’s has adopted a low-cost leadership strategy providing “Good quality at an affordable price”. Their main strengths are their complete vertical integration (See exhibit 2), their efficient distribution channels and their production capacities. Arcor is growing at a strong pace and is expanding fast. However, the questions of which market and which distribution channels has quickly arisen. In order to provide more insights about the best market to penetrate, the historical strategy will be studied along with their competitive advantage. The consumers’ habits will be reviewed and the geographical specificities will be identified to highlight the key factors that will drive the expansion. Issues / Problems: The international expansion of Arcor has highlighted some weaknesses of his model. The first and major problem is the transportation costs that are very high ending up being higher than the local standards. A second issue comes from the absence of marketing which create a strong barrier when they want to penetrate market where the customers value the brand. A third issue is...
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... | | | | | | | | | | | |Arcor: Global Strategy and Local Turbulence (Abridged) | |Pankaj Ghemawat, Michael Rukstad, Jennifer Illes | | | |...
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...References Wikipedia. 2013. Target market. [online] Available at: http://en.wikipedia.org/wiki/Target_market [Accessed: 27 Nov 2013 Anh, P. and Anh, P. 2013. Thống kê số người sử dụng smartphone tại Việt Nam 8/2013. [online] Available at: http://seotopten.net/thong-ke-so-nguoi-su-dung-smartphone-tai-viet-nam-82013/ [Accessed: 28 Nov 2013]. Customer Delight Service. 2013. [e-book] http://www.samsung.com/us/aboutsamsung/sustainability/productservices/download/Customer_delight_service.pdf [Accessed: 27 Nov 2013]. Dialaphone.co.uk. 2013. Samsung Galaxy S IV: How it Stands | Mobile Phone Reviews. [online] Available at: http://www.dialaphone.co.uk/blog/2013/03/15/samsung-galaxy-s4-as-it-stands/ [Accessed: 27 Nov 2013]. Education-Portal.com. 2013. Business Buyers: New Buy, Modified Rebuy, Straight Rebuy - Free Principles of Marketing Video. [online] Available at: http://education-portal.com/academy/lesson/business-buyers-new-buy-modified-rebuy-straight-rebuy.html#lesson [Accessed: 28 Nov 2013]. Education-Portal.com. 2013. What Is Consumer Buying Behavior? - Definition, Types & Quiz | Education Portal. [online] Available at: http://education-portal.com/academy/lesson/what-is-consumer-buying-behavior-definition-types-quiz.html#lesson [Accessed: 28 Nov 2013]. Facebook. 2013. Samsung Việt Nam. [online] Available at: https://www.facebook.com/pages/Samsung-Vi%E1%BB%87t-Nam/391699070842477?id=391699070842477&sk=info [Accessed: 28 Nov 2013]. Fullyc.com. 2013. This Guy Asked Samsung...
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...For the exclusive use of Y. Likaku, 2015. 9-704-427 REV: NOVEMBER 29, 2005 PANKAJ GHEMAWAT MICHAEL G. RUKSTAD JENNIFER L. ILLES Arcor: Global Strategy and Local Turbulence These last few years have been spent constructing a Latin American Arcor. In the next five years, we are going to have a global Arcor. — Luis Pagani, President, Arcor Group In May 2003, Argentina was slowly beginning to emerge from the country’s most devastating financial crisis. Half a year earlier, the crisis had peaked: the peso had devalued by 70%, the government had ordered a freeze on all bank withdrawals, and many local companies had fallen into financial default. In the wake of the disaster, Luis Pagani, president of Arcor Group, Latin America’s leading candy and chocolate manufacturer, was one of the few Argentine entrepreneurs remaining whose company was still financially stable. However, the crisis was taking its toll on even the most successful and healthy corporations. The crisis happened to hit Arcor at a critical time in the unfolding of its long-term strategic plans. Pagani had worked hard to make Arcor a dominant player in the Latin American confectionery market and had recently laid out plans to increase its presence in other regions. By 1999, he was ready to implement his strategy and was eager to work toward competing on the level of other multinational manufacturers, such as Mars, Nestlé, Kraft, Hershey, and Cadbury Schweppes. However, Arcor’s response to the...
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...Business plan for: Jenny’s Global Confections Jennifer Wickline Dr. Tekle Sebhatu Essentials of Exporting and Importing 06/12/2011 Table of Contents Executive Summary Section I: Company Overview/Background Analysis * Legal structure of Jenny’s Global Confections * Product/service offering and description * Management and personnel * Resources of our company * Competition and product demand Section II: The Marketing Component * Identification, evaluation, and selection of target market * Product selection, pricing, distribution and promotion method * SWOTT analysis (Strength, Weakness, Opportunity, Threat and Trend) * Market entry strategy and target countries Section III: Financials · Projected Income statement for 3 years · Cash flow statement for one year. Section IV: An Implementation Schedule * Periodic operational/management review * Contingency planning and exit strategy Addenda: Background Data on Target Countries and Market · Basic market statistics: historical and projected · Background facts · Competitive environment Bibliography * Resources used to create this Import/Export Business plan. Executive Summary Jenny’s Global Confections serves unique candies, chocolates and elaborate sweet dishes from around the world. Our employees are multinational and bring their unique styles and flavors from their countries to our confections...
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...* The GDP of most Latin American countries was suffering at the time when Arcor needed to expand globally. A more stable market is needed. * In advanced markets, like the U.S., Arcor faced a completely different landscape that included a greater reliance on powerful supermarkets and other outlets to distribute its products. * Since U.S. customers consumed almost one-third of the total global confectionery market, Arcor worked hard to establish a strong presence in this region. * brokers supplied smaller independent outlets, which represented approximately 80% of Arcor’s 500 U.S. clients. * 20% of Arcor’s exports went to the U.S., and almost all were produced at the Argentine or Brazilian plants. * Arcor committed itself to thinking of creative, costefficient ways to penetrate the highly competitive U.S. market. * This deal increased Arcor’s annual exports by $40 Million. * In Canada, nearly 60% of the products sold in the supermarket bear a private brand, so our strategy is to manufacture with a private brand as a mechanism of penetration into the market. We’ll do this first by crawling, then walking, and finally, running. * the office’s focus was to offer “better service, efficient logistics, and compelling marketing. * Post-crisis, Arcor restructured its international division, adding more employees and more markets. It also moved its international headquarters...
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...International Markets Bureau MARKET INDICATOR REPORT | MAY 2011 Pathfinder Report Global Packaged Confectionery Trends Source: Shutterstock Pathfinder Report Global Packaged Confectionery Trends EXECUTIVE SUMMARY Australasia (Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging...
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...SESSION 1 2 CHAPTER 1: Global marketing in the firm 2 1. Introduction to globalization 2 2. The process of developing the global marketing plan 2 3. Comparison of the global marketing and management style of SMEs and LSEs 2 4. Should the company “stay at home” or “go abroad”? 3 5. Development of the global marketing concept 3 6. Forces for global integration and market responsiveness 3 7. The value chain as a framework for identifying international competitive advantage 4 8. Value shop and the service value chain 5 9. Information business and the virtual value chain 5 CHAPTER 2: Initiation of internationalization 8 1. Introduction 8 2. Internationalization motives 8 3. Triggers of export initiation (change agents) 9 4. Internationalization barriers / risks 9 SESSION 2 11 CHAPTER 3: Internationalization theories 11 1. Introduction 11 2. The Uppsala internationalization model 11 3. The transaction cost analysis model 11 4. The network model 12 5. Internationalization of SMEs 12 6. Born globals 12 7. Internationalization of services 13 CHAPTER 4: Development of the firm’s international competitiveness 15 1. Analysis of national competitiveness (the porter diamond) 15 1.1. Factor conditions 15 1.2. Demand conditions 15 1.3. Related and supporting industries 15 1.4. Firm strategy, structure and rivalry 15 1.5. Government 15 1.6. Chance 15 2. Competition analysis in an industry 15 2.1....
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...Can You Fight Poverty With a Five-Star Hotel? (Photo courtesy of Mövenpick Hotels & Resorts) by Cheryl Strauss Einhorn, Special to ProPublica, Jan. 2, 2013, 12 a.m. * 0 Comments * Republish * Email * Print Connect with Facebook to share articles you read on ProPublica. Learn more » * * * * 1 inShare This story was co-published with Foreign Policy. Accra is a city of choking red dust where almost no rain falls for three months at a time and clothes hung out on a line dry in 15 minutes. So the new five-star Mövenpick hotel affords a haven of sorts in Ghana’s crowded capital, with manicured lawns, amply watered vegetation, and uniformed waiters gliding poolside on roller skates to offer icy drinks to guests. A high concrete wall rings the grounds, keeping out the city’s overflowing poor who hawk goods in the street by day and the homeless who lie on the sidewalks by night. The Mövenpick, which opened in 2011, fits the model of a modern international luxury hotel, with 260 rooms, seven floors, and 13,500 square feet of retail space displaying $2,000 Italian handbags and other wares. But it is exceptional in at least one respect: It was financed by a combination of two very different entities: a multibillion-dollar investment company largely controlled by a Saudi prince, and the poverty-fighting World Bank. The investment company, Kingdom Holding Company, has a market value of $12 billion, and Forbes ranks its principal owner, Prince...
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...companies is the involvement of customers, producers, suppliers, and other stakeholders in the global marketing process. Global marketing therefore reflects the trend of firms selling products and services across many countries. Drawing on an incomparable breadth of international examples, Svend Hollensen not only demonstrates how global marketing works, but also how it relates to real decisions around the world. This book offers a truly global approach with cases and exhibits from all parts of the world, including Europe, the Middle East, Africa, the Far East, North and South America. It provides a complete and concentrated overview of the total international marketing planning process, along with many new, up-to-date exhibits and cases, which illustrate the theory by showing practical applications. • Extensive coverage of hot topics such as glocalization, born globals, value creation, value net, celebrity branding, brand piracy, and viral marketing, as well as a comprehensive new section on integrated marketing communication through social networking. • Brand new case studies focus on globally recognized brands and companies operating in a number of countries, including Build-A-Bear Workshop, Hello Kitty, Ralph Lauren and Sony Music Entertainment. • Global Marketing ‘Svend Hollensen writes with real authority and insight having been involved in global marketing both as a manager and academic. His book provides a framework within which managers...
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...is the world’s fourth largest companies in the confectionery Market with 16 plants and 36 commercial companies all around the world, having 20,000 employees generating 35,000 cores of turnovers in 2006. A wide and complex portfolio of products, including mainly: chocolate spread, candies, pralines, bakery, chocolate snack eggs with surprise, cold tea & chilled chocolate products. The company is owned and managed by the founding Ferrero family. (Nutella.com, nd). 1. External Environment The Environment encapsulates many different influences, which can be difficult to analyze. The difficulty can be to identify: the environment diversity; the speed of change as managers feel that the pace of technological change and the speed of global communication change faster than even before; the last difficulty is complexity. Ferrero in order to face these difficulties can use different tools, such as: PESTEL (Political, Economical, Socio-Cultural, Technological, Environmental, Legal); Porter’s five forces; Market segmentation. In order to analyse: the macro-environment, competitors and market. (Johnson and Scholes, 2002, pp98). 2.1 Macro-Environment Macro-Environmental consists of broad environmental factors that impact to a greater or lesser extent on almost all organizations. The PESTEL can help to identify those factors, as it looks at the way in which future trends in the political, economic, social, technological, environmental and legal environments might impinge...
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...morning in February 2013. Jesper Møller, the CEO of Toms Confectionery Group, was looking down at the frozen fountain in the courtyard by Toms’ headquarters outside Copenhagen. Designed in 1962 by the famous Danish architect Arne Jacobsen, the headquarters, like the company, was an iconic piece of Danish history. For decades, Toms had been a Danish household name and local market leader within the confectionery industry. Today, however, it was time to look ahead. Toms, like most other companies, had gone through the financial crisis with a solid focus on the cost base. However, as a small player in the global confectionery industry, the company could only go so far with cost cutting alone. Instead, Toms needed to make a thorough analysis to capture the opportunities that lay ahead. That morning, Møller had called together his management team to discuss Toms’ fiveyear strategy for the chocolate confectionery business under the following headline: In the spring of 2012, Toms took a significant step forward by acquiring the German chocolate company Hanseatische Chocolade GmbH. Overnight, Toms added sales of 360 million Danish kroner. However, the management team agreed that this was only the first step in Toms’ path. As Møller and the management team watched the day’s first truckload of cocoa beans approach the factory loading dock, they began reflecting on the past, present and future of Toms as a chocolate confectionery company. How should Toms profitably grow its chocolate...
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...the chocolate industry kpmg.com T he outlook for the world’s chocolate industry is brighter than it has been for eight years. Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014, delivering record global revenues of US$117bn. This robust performance is driven by a 2.1% increase in volume, reflecting growing appetite for chocolate in emerging markets. The challenge for the industry’s major players is how to make best use of this boom to profitably grow their volumes faster than the markets, achieve sustainable improvements in core operating margins and make the right investments – be they in capacity, acquisitions, the supply chain, marketing or R&D – to seize the significant opportunities ahead. The single biggest factor improving the industry’s performance is the fact that, at long last, the global economy is showing signs of sustained recovery. Growth in many major markets is accelerating. The stellar performers are India (expected to grow by 22% this year), Brazil (13%) and China (11%). The potential long-term growth in emerging economies – many of which have growing middle classes – is vast. To give just one example: the per capita consumption of chocolate in China is only a tenth of that in Switzerland. Yet, as this global tour of the chocolate industry suggests, the future is not without challenges. The immediate concern is the balance between supply of cocoa and the chocolate industry’s demand. Manufacturers are already confronting this issue...
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...Unclassified DSTI/ICCP/TISP(2005)12/FINAL Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 07-Apr-2006 ___________________________________________________________________________________________ English - Or. English DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY DSTI/ICCP/TISP(2005)12/FINAL Unclassified Working Party on Telecommunication and Information Services Policies MULTIPLE PLAY: PRICING AND POLICY TRENDS English - Or. English JT03207142 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DSTI/ICCP/TISP(2005)12/FINAL FOREWORD This report was presented to the Working Party on Telecommunication and Information Services Policies in December 2005 and was declassified by the Committee for Information, Computer and Communications Policy in March 2006. The report was prepared by Mr. Yoshikazu Okamoto and Mr. Taylor Reynolds of the OECD’s Directorate for Science, Technology and Industry. It is published under the responsibility of the SecretaryGeneral of the OECD. © OECD/OCDE 2006 2 DSTI/ICCP/TISP(2005)12/FINAL TABLE OF CONTENTS MAIN POINTS.............................................................................................................................................. 6 Regulatory issues.....................
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